The Renters’ Rights Bill is expected to become law in the UK in Spring 2025 and represents the most significant reform the private rented sector has seen since the Housing Act 1988. The Bill has wide-ranging implications for landlords, tenants, and letting agents alike, and is designed to deliver “long overdue” reforms to the private rental sector. Its primary goal is to give tenants more security to stay in their homes and more freedom to leave substandard properties.
Under the new legislation, landlords will not be allowed to charge more than one month’s rent upfront, and fixed-term assured shorthold tenancies (ASTs) will be abolished, becoming periodic. This means they will transform into rolling tenancies with no specific end date. Additionally, Section 21 evictions will stop, with landlords no longer being able to serve “no-fault” notices to regain possession of their properties.
Furthermore, there will be a ban on rental bidding wars; landlords and agents will no longer be allowed to accept offers above the advertised price. A landlord ombudsman will be introduced to help resolve disputes between landlords and tenants impartially, and a private rented sector database will be created to compile information about landlords and properties, providing visibility on compliance and the property manager’s information.
The Decent Homes Standard will ensure that all rental properties meet minimum quality standards. Moreover, landlords will not be able to refuse tenants on benefits, those with children, or, in some circumstances, tenants with pets. However, landlords can insist on an insurance policy to cover potential damage.
